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USPS raises parcel prices and launches new products

USPS Priority Mail

USPS has announced a 3.5% price increase for Priority Mail, its package and parcel service,including new flat-rate product innovations, with effect from 2 January 2011.

In addition to an overall price change of 3.5% for Priority Mail, there will be new prices forExpress Mail, Global Express Guaranteed, Express Mail International, Priority Mail International,Parcel Select and Parcel Return Service, also effective on January 2. The overall price increasefor all shipping services equals 3.6%.

New Priority Mail products will include a legal-size flat-rate envelope and a padded flat-rateenvelope both priced at $4.95. All six types of Priority Mail Flat Rate envelopes will be pricedthe same as the regular Priority Mail Envelope at $4.95, including the Gift Card Flat RateEnvelope, Window Flat Rate Envelope, and Small Flat Rate Envelope.

Prices for the Express Mail Flat Rate Envelope will remain unchanged at $18.30 including a newExpress Mail Legal Flat Rate Envelope to be launched in January.

“The Postal Service continues to offer the best combination of value and shipping solutions inthe market,” said Paul Vogel, president, Mailing and Shipping Services. “These new products willprovide simple solutions to a dynamic marketplace.”

Currently available for Express Mail only, the popular Hold For Pickup service option will beextended to Priority Mail and First-Class Mail commercial parcels in the new year. Available at noextra charge for customers using shipping labels from Click-N-Ship or other USPS-approved vendor,packages with the Hold For Pickup endorsement are shipped directly to a Post Office, instead ofbeing left at a recipient’s address. Packages are then held at the Post Office until picked upduring office hours at a time convenient for the recipient.

Prices for 50,000 Post Office Boxes in 49 retail Post Offices will change to reflect a newpricing schedule based on their presence in areas where significant competition exists. Post OfficeBoxes at these Post Offices have been classified as competitive products, allowing the PostalService to test consumer interest in enhancements to current service and help shape futureofferings.

For shippers mailing regionally, a new economical Priority Mail Regional Rate Box featuringUSPS-supplied packaging will be available in two sizes for Commercial Base and Commercial Pluscustomers. The Priority Mail Regional Rate Box offers zone-based pricing with the “If it Fits itShips” concept. Volume thresholds for Commercial Plus customers have also been reduced.

Critical Mail is another innovative product available to Commercial Plus customers. Offeringfast, consistent time-in-transit service for sensitive documents such as event tickets,identification cards and high-value direct mail, Critical Mail provides customers with tracking andfree Delivery Confirmation. Critical Mail fits into the category of Priority Mail with First-ClassMail service standards.

Customers choosing online shipping solutions from the Postal Service will continue to savecompared to retail prices. A complete listing of 2011 prices is available online under the http://www.usps.com/prices link.

Pricing adjustments to competitive products are made each January.

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